Bremsen Technik (UK) Limited - Limited company accounts 18.2

REGISTERED NUMBER: 04340885 (England and Wales)

Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31st January 2019

for

BREMSEN TECHNIK (UK) LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

6

Balance Sheet

7

Statement of Changes in Equity

8

Cash Flow Statement

9

Notes to the Cash Flow Statement

10

Notes to the Financial Statements

11

DIRECTORS:

B R Hall

R J Anderson

SECRETARY:

R J Anderson

REGISTERED OFFICE:

Unit 6, Easton Way

Colburn

Catterick Garrison

North Yorkshire

DL9 4GA

REGISTERED NUMBER:

04340885 (England and Wales)

SENIOR STATUTORY AUDITOR:

Mr Nicholas Vassilounis FCA

AUDITORS:

Mitchell Gordon LLP

Accountants and Statutory Auditor

43 Coniscliffe Road

Darlington

Co. Durham

DL3 7EH

The directors present their strategic report for the year ended 31st January 2019.

REVIEW OF BUSINESS

Net sales increased from £12.8m to £13.8m following organic growth of existing contracts. Purchasing conditions

remain a challenge due to continued instability of global exchange rates. Cash generation in the period remained

relatively stable during the year. Our European footprint has allowed for the continued development and creation of new

European opportunities which we expect to increase significantly over the coming years.

The investment in ancillary operations has continued throughout the year and we are now in a position to capitalise on

the infrastructure put in place. We continued significant investments in modernising the company's IT systems and

reporting tools, we intend to continue this investment over the coming periods.

Recent newly secured contracts will ensure growth within the company as well as mitigating risk on current contracts.

PRINCIPAL RISKS AND UNCERTAINTIES

Whilst Brexit remains an uncertainty we continue to put measures in place to minimise any detrimental impact it may

cause. We monitor global exchange rates on a daily basis and naturally hedge our transactions where possible

ON BEHALF OF THE BOARD:

B R Hall - Director

31st October 2019

The directors present their report with the financial statements of the company for the year ended 31st January 2019.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the sale of motor vehicle parts.

DIVIDENDS

The total distribution of dividends for the year ended 31st January 2019 will be £ 590,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1st February 2018 to the date of this

report.

B R Hall

R J Anderson

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements

in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors

have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not

approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the

company and of the profit or loss of the company for that period. In preparing these financial statements, the directors

are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's transactions and disclose with reasonable accuracy at any time the financial position of the company and

enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for

safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud

and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken

as a director in order to make himself aware of any relevant audit information and to establish that the company's

auditors are aware of that information.

AUDITORS

The auditors, Mitchell Gordon LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

B R Hall - Director

31st October 2019

Opinion

We have audited the financial statements of Bremsen Technik (UK) Limited (the 'company') for the year ended

31st January 2019 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in

Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a

summary of significant accounting policies. The financial reporting framework that has been applied in their preparation

is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted

Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31st January 2019 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.

Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the

financial statements section of our report. We are independent of the company in accordance with the ethical

requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard,

and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit

evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic

Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors

thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise

explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing

so, consider whether the other information is materially inconsistent with the financial statements or our knowledge

obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or

apparent material misstatements, we are required to determine whether there is a material misstatement in the financial

statements or a material misstatement of the other information. If, based on the work we have performed, we conclude

that there is a material misstatement of this other information, we are required to report that fact. We have nothing to

report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit,

we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you

if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are

responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and

for such internal control as the directors determine necessary to enable the preparation of financial statements that are

free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a

going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of

accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic

alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs

(UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are

considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic

decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the

Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those

matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's

members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Nicholas Vassilounis FCA (Senior Statutory Auditor)

for and on behalf of Mitchell Gordon LLP

Accountants and Statutory Auditor

43 Coniscliffe Road

Darlington

Co. Durham

DL3 7EH

31st October 2019

TURNOVER

3

13,819,824

12,783,218

Cost of sales

10,418,014

9,116,305

GROSS PROFIT

3,401,810

3,666,913

Distribution costs

88,389

82,553

Administrative expenses

3,146,424

2,860,820

3,234,813

2,943,373

166,997

723,540

Other operating income

787,462

485,365

OPERATING PROFIT

5

954,459

1,208,905

Interest payable and similar expenses

7

(878

)

4,087

PROFIT BEFORE TAXATION

955,337

1,204,818

Tax on profit

8

186,872

205,696

PROFIT FOR THE FINANCIAL YEAR

768,465

999,122

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

768,465

999,122

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

75,895

93,067

Investments

12

102

102

75,997

93,169

CURRENT ASSETS

Stocks

13

4,152,860

3,349,892

Debtors

14

8,360,008

8,173,487

Cash at bank and in hand

976,441

232,466

13,489,309

11,755,845

CREDITORS

Amounts falling due within one year

15

8,941,639

7,391,109

NET CURRENT ASSETS

4,547,670

4,364,736

TOTAL ASSETS LESS CURRENT LIABILITIES

4,623,667

4,457,905

CREDITORS

Amounts falling due after more than one year

16

(18,642

)

(28,611

)

PROVISIONS FOR LIABILITIES

21

(14,420

)

(17,154

)

NET ASSETS

4,590,605

4,412,140

CAPITAL AND RESERVES

Called up share capital

22

102

102

Retained earnings

23

4,590,503

4,412,038

SHAREHOLDERS' FUNDS

4,590,605

4,412,140

The financial statements were approved by the Board of Directors on 31st October 2019 and were signed on its behalf by:

B R Hall - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st February 2017

102

3,902,916

3,903,018

Changes in equity

Dividends

-

(490,000

)

(490,000

)

Total comprehensive income

-

999,122

999,122

Balance at 31st January 2018

102

4,412,038

4,412,140

Changes in equity

Dividends

-

(590,000

)

(590,000

)

Total comprehensive income

-

768,465

768,465

Balance at 31st January 2019

102

4,590,503

4,590,605

Cash flows from operating activities

Cash generated from operations

1

2,062,544

2,458,110

Interest paid

(1,658

)

(2,678

)

Interest element of hire purchase payments paid

2,536

(1,409

)

Tax paid

(400,581

)

(193,817

)

Net cash from operating activities

1,662,841

2,260,206

Cash flows from investing activities

Purchase of tangible fixed assets

(47,418

)

(55,730

)

Sale of tangible fixed assets

15,800

-

Net cash from investing activities

(31,618

)

(55,730

)

Cash flows from financing activities

Movement in group balances

(258,775

)

(1,735,299

)

Capital repayments in year

(9,240

)

(9,946

)

Equity dividends paid

(590,000

)

(490,000

)

Net cash from financing activities

(858,015

)

(2,235,245

)

Increase/(decrease) in cash and cash equivalents

773,208

(30,769

)

Cash and cash equivalents at beginning of year

2

203,233

234,002

Cash and cash equivalents at end of year

2

976,441

203,233

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31/1/19

31/1/18

£

£

Profit before taxation

955,337

1,204,818

Depreciation charges

48,499

41,404

Loss on disposal of fixed assets

291

-

Finance costs

(878

)

4,087

1,003,249

1,250,309

Increase in stocks

(802,968

)

(1,320,425

)

Decrease/(increase) in trade and other debtors

72,254

(1,732,550

)

Increase in trade and other creditors

1,790,009

4,260,776

Cash generated from operations

2,062,544

2,458,110

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these

Balance Sheet amounts:

Year ended 31st January 2019

31/1/19

1/2/18

£

£

Cash and cash equivalents

976,441

232,466

Bank overdrafts

-

(29,233

)

976,441

203,233

Year ended 31st January 2018

31/1/18

1/2/17

£

£

Cash and cash equivalents

232,466

234,002

Bank overdrafts

(29,233

)

-

203,233

234,002

1.	STATUTORY INFORMATION

Bremsen Technik (UK) Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared under the going concern basis of accounting.

Preparation of consolidated financial statements

The financial statements contain information about Bremsen Technik (UK) Limited as an individual company

and do not contain consolidated financial information as the parent of the group. The company has taken the

option under Section 402 of the Companies Act 2006 not to prepare consolidated financial statements on the

grounds that the subsidiary undertaking is dormant and is therefore not material for the purpose of giving a true

and fair view.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates

and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other

sources. The estimates and associated assumptions are based on historical experience and other factors that are

considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates

are recognised in the period in which the estimate is revised where the revision affects only that period, or in the

period of the revision and future periods where the revision affects both current and future periods.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2011, is being amortised evenly over its estimated useful life of five years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost

less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

33% on cost, 25% on cost and 20% on cost

Motor vehicles

-

40% on reducing balance

Computer and office equipment

-

at varying rates on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12

'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the

contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is

a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to

realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction

price including transaction costs and are subsequently carried at amortised cost using the effective interest

method unless the arrangement constitutes a financing transaction, where the transaction is measured at the

present value of the future receipts discounted at a market rate of interest. Financial assets classified as

receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint

ventures, are initially measured at fair value, which is normally the transaction price. Such assets are

subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that

investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably

are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of

impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that

occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If

an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of

the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is

recognised in profit and loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised,

the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the

carrying amount would have been, had the impairment not previously been recognised. The impairment reversal

is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are

settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership

to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has

transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual

arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of

the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including loans from fellow group companies are initially recognised at transaction

price unless the arrangement constitutes a financial transaction, where the debt instrument is measured at the

present value of the future payments discounted at a market rate of interest. Financial liabilities classified as

payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of

business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year

or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction

price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or

cancelled.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive

Income, except to the extent that it relates to items recognised in other comprehensive income or directly in

equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at

the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held

under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases

are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element

of the future payments is treated as a liability.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

31/1/19

31/1/18

£

£

UK sales

4,959,367

4,673,630

EC sales

7,941,240

7,296,588

Rest of world sales

919,217

813,000

13,819,824

12,783,218

4.	EMPLOYEES AND DIRECTORS

31/1/19

31/1/18

£

£

Wages and salaries

1,614,545

1,237,642

Social security costs

138,816

113,029

Other pension costs

36,947

28,839

1,790,308

1,379,510

The average number of employees during the year was as follows:

31/1/19

31/1/18

Directors

2

2

Sales

3

4

Distribution

4

3

Administration

25

21

34

30

31/1/19

31/1/18

£

£

Directors' remuneration

130,247

109,144

Directors' pension contributions to money purchase schemes

4,843

4,050

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

5.	OPERATING PROFIT

The operating profit is stated after charging:

31/1/19

31/1/18

£

£

Depreciation - owned assets

33,508

26,412

Depreciation - assets on hire purchase contracts

14,991

14,992

Loss on disposal of fixed assets

291

-

Rentals under operating leases

57,680

41,468